----

----

| [ü] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|-----------------------------------------------------------------------------------------|
|     | For the quarterly period ended September 30, 2010                                       |
|  OR |                                                                                    |

| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------------|------------------------------------------------------------------------------------------|
|                 | For the transition period from ___________ to __________                                 |

----

| Minnesota                                                      | 41-0572550                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

----

| Yes | ü | No |   |
|-----|--------|----|--------|

| Yes |   | No |   |
|-----|--------|----|--------|

| Large accelerated filer  |   |                                                | Accelerated filer         | ü |
|-------------------------------|--------|-----------------------------------------------------|---------------------------|--------|
| Non-accelerated filer    |   |  (Do not check if a smaller reporting company) | Smaller reporting company |   |

| Yes |   | No | ü |
|-----|--------|----|--------|

----

----

|  PART I - FINANCIAL INFORMATION | Page       |
|--------------------------------------|------------|
|                                 | Item 1     | Financial Statements (Unaudited) | 3 |
|                                 |       |   | Condensed Consolidated Statements of Operations | 3 |
|                                 |       |   | Condensed Consolidated Balance Sheets | 4 |
|                                 |       |   | Condensed Consolidated Statements of Cash Flows | 5 |
|                                 |       |   | Notes to the Condensed Consolidated Financial Statements | 6 |
|                                 |       |   | 1 |   | Basis of Presentation | 6 |
|                                 |       |   | 2 |   | Newly Adopted Accounting Pronouncements | 6 |
|                                 |       |   | 3 |   | Management Actions | 6 |
|                                 |       |   | 4 |   | Acquisitions | 7 |
|                                 |       |   | 5 |   | Inventories | 7 |
|                                 |       |   | 6 |   | Goodwill and Intangible Assets | 7 |
|                                 |       |   | 7 |   | Debt | 8 |
|                                 |       |   | 8 |   | Warranty | 10 |
|                                 |       |   | 9 |   | Fair Value Measurements | 10 |
|                                 |       |   | 10 |   | Retirement Benefit Plans | 11 |
|                                 |       |   | 11 |   | Comprehensive Income (Loss) | 12 |
|                                 |       |   | 12 |   | Commitments and Contingencies | 12 |
|                                 |       |   | 13 |   | Income Taxes | 12 |
|                                 |       |   | 14 |   | Stock-Based Compensation | 13 |
|                                 |       |   | 15 |   | Earnings (Loss) Per Share | 13 |
|                                 |       |   | 16 |   | Segment Reporting | 13 |
|                                 |       |   | 17 |   | Related Party Transactions | 14 |
|                                 |       |   | 18 |   | Subsequent Event | 14 |
|                                 | Item 2     | Management's Discussion and Analysis of Financial Condition and Results of Operations | 15 |
|                                 | Item 3     | Quantitative and Qualitative Disclosures About Market Risk | 22 |
|                                 | Item 4     | Controls and Procedures | 22 |
|                                 |       |   |   |   |   |   |
| PART II - OTHER INFORMATION          |       |
|                                 | Item 1     | Legal Proceedings | 23 |
|                                 | Item 1A    | Risk Factors | 23 |
|                                 | Item 2     | Unregistered Sales of Equity Securities and Use of Proceeds | 23 |
|                                 | Item 6     | Exhibits |   |   | 24 |
|                                 | Signatures |   |   |   |   | 25 |

----

|                                            |   | Three Months Ended |       |   | Nine Months Ended |   |
|-------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                            |   | September 30       |       |   | September 30      |   |
|                                            |   | 2010               |       |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Net Sales                                       |   | $                  | 168,637    |   |              | $      | 154,427 |   |   | $ | 484,879 |   |   | $ | 431,651 |   |
| Cost of Sales                                   |   |               | 96,775     |   |              |   | 89,539 |   |   |   | 277,715 |   |   |   | 253,939 |   |
| Gross Profit                                    |   |               | 71,862     |   |              |   | 64,888 |   |   |   | 207,164 |   |   |   | 177,712 |   |
| Operating Expense:                              |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Research and Development Expense                |   |               | 7,114      |   |              |   | 5,466 |   |   |   | 19,058 |   |   |   | 16,837 |   |
| Selling and Administrative Expense              |   |               | 54,227     |   |              |   | 51,800 |   |   |   | 160,463 |   |   |   | 146,271 |   |
| Goodwill Impairment Charge                      |   |               | -          |   |              |   | - |   |   |   | - |   |   |   | 43,363 |   |
| Total Operating Expense                         |   |               | 61,341     |   |              |   | 57,266 |   |   |   | 179,521 |   |   |   | 206,471 |   |
| Profit (Loss) from Operations                   |   |               | 10,521     |   |              |   | 7,622 |   |   |   | 27,643 |   |   |   | (28,759 | ) |
| Other Income (Expense):                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                                 |   |               | 52         |   |              |   | 96 |   |   |   | 129 |   |   |   | 301 |   |
| Interest Expense                                |   |               | (390       | )      |              |   | (726 | ) |   |   | (1,219 | ) |   |   | (2,290 | ) |
| Net Foreign Currency Transaction Gains (Losses) |   |               | 130        |   |              |   | 353 |   |   |   | (432 | ) |   |   | 145 |   |
| ESOP Income                                     |   |               | -          |   |              |   | 252 |   |   |   | - |   |   |   | 740 |   |
| Other Income (Expense), Net                     |   |               | 57         |   |              |   | 21 |   |   |   | 115 |   |   |   | (27 | ) |
| Total Other Expense, Net                        |   |               | (151       | )      |              |   | (4 | ) |   |   | (1,407 | ) |   |   | (1,131 | ) |
|                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Profit (Loss) Before Income Taxes               |   |               | 10,370     |   |              |   | 7,618 |   |   |   | 26,236 |   |   |   | (29,890 | ) |
| Income Tax Expense                              |   |               | 2,844      |   |              |   | 1,835 |   |   |   | 8,445 |   |   |   | 3,066 |   |
| Net Earnings (Loss)                             |   | $                  | 7,526      |   |              | $      | 5,783 |   |   | $ | 17,791 |   |   | $ | (32,956 | ) |
|                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (Loss) per Share:                      |   |               |       |   |              |   |   |   |   |   |   |   |   |
| Basic                                           |   | $                  | 0.40       |   |              | $      | 0.31 |   |   | $ | 0.95 |   |   | $ | (1.78 | ) |
| Diluted                                         |   | $                  | 0.39       |   |              | $      | 0.31 |   |   | $ | 0.92 |   |   | $ | (1.78 | ) |
|                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Shares Outstanding:            |   |               |       |   |              |   |   |   |   |
| Basic                                           |   |               | 18,873,249 |   |              |   | 18,591,713 |   |   |   | 18,782,404 |   |   |   | 18,466,989 |   |
| Diluted                                         |   |               | 19,402,902 |   |              |   | 18,954,008 |   |   |   | 19,299,783 |   |   |   | 18,466,989 |   |
|                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cash Dividend Declared per Common Share         |   | $                  | 0.14       |   |              | $      | 0.13 |   |   | $ | 0.42 |   |   | $ | 0.39 |   |

----

|                                                                                                                                |   | September 30, |     |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------------|--------|
|                                                                                                                                |   | 2010          |     |   | 2009         |   |
| ASSETS                                                                                                                              |   |          |     |   |         |   |
| Current Assets:                                                                                                                     |   |          |     |   |         |   |
| Cash and Cash Equivalents                                                                                                           |   | $             | 33,730   |   |         | $      | 18,062 |   |
| Accounts Receivable, less Allowances of $5,568 and $5,077, respectively                                                             |   |          | 114,603  |   |         |   | 121,203 |   |
| Inventories                                                                                                                         |   |          | 68,541   |   |         |   | 56,646 |   |
| Prepaid Expenses                                                                                                                    |   |          | 8,433    |   |         |   | 10,295 |   |
| Deferred Income Taxes, Current Portion                                                                                              |   |          | 9,988    |   |         |   | 9,362 |   |
| Other Current Assets                                                                                                                |   |          | 33       |   |         |   | 344 |   |
| Total Current Assets                                                                                                                |   |          | 235,328  |   |         |   | 215,912 |   |
| Property, Plant and Equipment                                                                                                       |   |          | 286,355  |   |         |   | 287,915 |   |
| Accumulated Depreciation                                                                                                            |   |          | (198,768 | )      |         |   | (190,698 | ) |
| Property, Plant and Equipment, Net                                                                                                  |   |          | 87,587   |   |         |   | 97,217 |   |
| Deferred Income Taxes, Long-Term Portion                                                                                            |   |          | 6,511    |   |         |   | 7,911 |   |
| Goodwill                                                                                                                            |   |          | 20,221   |   |         |   | 20,181 |   |
| Intangible Assets, Net                                                                                                              |   |          | 26,231   |   |         |   | 29,243 |   |
| Other Assets                                                                                                                        |   |          | 7,569    |   |         |   | 7,262 |   |
| Total Assets                                                                                                                        |   | $             | 383,447  |   |         | $      | 377,726 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                          |   |          |     |   |         |   |   |   |
| Current Liabilities:                                                                                                                |   |          |     |   |         |   |   |   |
| Current Portion of Long-Term Debt                                                                                                   |   | $             | 4,066    |   |         | $      | 4,012 |   |
| Short-Term Borrowings                                                                                                               |   |          | -        |   |         |   | 7 |   |
| Accounts Payable                                                                                                                    |   |          | 44,494   |   |         |   | 42,658 |   |
| Employee Compensation and Benefits                                                                                                  |   |          | 28,434   |   |         |   | 28,092 |   |
| Income Taxes Payable                                                                                                                |   |          | 969      |   |         |   | 3,982 |   |
| Other Current Liabilities                                                                                                           |   |          | 35,498   |   |         |   | 37,401 |   |
| Total Current Liabilities                                                                                                           |   |          | 113,461  |   |         |   | 116,152 |   |
| Long-Term Liabilities:                                                                                                              |   |          |     |   |         |   |   |   |
| Long-Term Debt                                                                                                                      |   |          | 27,685   |   |         |   | 30,192 |   |
| Employee-Related Benefits                                                                                                           |   |          | 30,991   |   |         |   | 31,848 |   |
| Deferred Income Taxes, Long-Term Portion                                                                                            |   |          | 4,665    |   |         |   | 7,417 |   |
| Other Liabilities                                                                                                                   |   |          | 7,156    |   |         |   | 7,838 |   |
| Total Long-Term Liabilities                                                                                                         |   |          | 70,497   |   |         |   | 77,295 |   |
| Total Liabilities                                                                                                                   |   |          | 183,958  |   |         |   | 193,447 |   |
| Commitments and Contingencies (Note 12)                                                                                             |   |          |     |   |         |   |   |   |
|                                                                                                                                |   |          |     |   |         |   |   |   |
| Shareholders' Equity:                                                                                                               |   |          |     |   |         |   |   |   |
| Preferred Stock, $0.02 par value; 1,000,000 shares authorized; no shares issued or outstanding                                      |   |          | -        |   |         |   | - |   |
| Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,945,500 and 18,750,828 shares issued and outstanding, respectively |   |          | 7,105    |   |         |   | 7,032 |   |
| Additional Paid-In Capital                                                                                                          |   |          | 9,878    |   |         |   | 7,772 |   |
| Retained Earnings                                                                                                                   |   |          | 204,647  |   |         |   | 192,584 |   |
| Accumulated Other Comprehensive Loss                                                                                                |   |          | (22,141  | )      |         |   | (23,109 | ) |
| Total Shareholders’ Equity                                                                                                    |   |          | 199,489  |   |         |   | 184,279 |   |
| Total Liabilities and Shareholders’ Equity                                                                                    |   | $             | 383,447  |   |         | $      | 377,726 |   |

----

|                                                                               |   | Nine Months Ended |    |
|------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                               |   | September 30      |    |
|                                                                               |   | 2010              |    |   | 2009 |   |
| OPERATING ACTIVITIES                                                               |   |              |    |   |   |   |
| Net Earnings (Loss)                                                                |   | $                 | 17,791  |   |   | $ | (32,956 | ) |
| Adjustments to Net Earnings (Loss) to Arrive at Operating Cash Flow:               |   |              |    |   |   |   |   |   |
| Depreciation                                                                       |   |              | 13,668  |   |   |   | 14,765 |   |
| Amortization                                                                       |   |              | 2,356   |   |   |   | 2,409 |   |
| Deferred Tax (Benefit) Expense                                                     |   |              | (2,119  | ) |   |   | 1,384 |   |
| Goodwill Impairment Charge                                                         |   |              | -       |   |   |   | 43,363 |   |
| Stock-Based Compensation Expense                                                   |   |              | 2,064   |   |   |   | 1,416 |   |
| ESOP Expense                                                                       |   |              | -       |   |   |   | 219 |   |
| Tax Benefit on ESOP                                                                |   |              | -       |   |   |   | 6 |   |
| Allowance for Doubtful Accounts and Returns                                        |   |              | 1,206   |   |   |   | 965 |   |
| Other, Net                                                                         |   |              | (3      | ) |   |   | 130 |   |
| Changes in Operating Assets and Liabilities, Excluding the Impact of Acquisitions: |   |              |    |   |   |   |   |   |
| Accounts Receivable                                                                |   |              | 4,486   |   |   |   | 8,454 |   |
| Inventories                                                                        |   |              | (12,561 | ) |   |   | 6,433 |   |
| Accounts Payable                                                                   |   |              | 2,620   |   |   |   | 11,679 |   |
| Employee Compensation and Benefits                                                 |   |              | 96      |   |   |   | 1,717 |   |
| Other Current Liabilities                                                          |   |              | 1,167   |   |   |   | (5,808 | ) |
| Income Taxes Payable/Prepaid                                                       |   |              | (339    | ) |   |   | 6,738 |   |
| Other Assets and Liabilities                                                       |   |              | (248    | ) |   |   | (2,494 | ) |
| Net Cash Provided by Operating Activities                                          |   |              | 30,184  |   |   |   | 58,420 |   |
| INVESTING ACTIVITIES                                                               |   |              |    |   |   |   |   |   |
| Purchases of Property, Plant and Equipment                                         |   |              | (6,651  | ) |   |   | (8,830 | ) |
| Proceeds from Disposals of Property, Plant and Equipment                           |   |              | 566     |   |   |   | 287 |   |
| Acquisition of Businesses, Net of Cash Acquired                                    |   |              | (26     | ) |   |   | (2,162 | ) |
| Net Cash Used for Investing Activities                                             |   |              | (6,111  | ) |   |   | (10,705 | ) |
| FINANCING ACTIVITIES                                                               |   |              |    |   |   |   |   |   |
| Change in Short-Term Borrowings, Net                                               |   |              | (7      | ) |   |   | 353 |   |
| Payment of Long-Term Debt                                                          |   |              | (3,194  | ) |   |   | (56,522 | ) |
| Purchases of Common Stock                                                          |   |              | (3,153  | ) |   |   | - |   |
| Proceeds from Issuance of Common Stock                                             |   |              | 4,707   |   |   |   | 333 |   |
| Tax Benefit on Stock Plans                                                         |   |              | 1,281   |   |   |   | 11 |   |
| Dividends Paid                                                                     |   |              | (7,950  | ) |   |   | (7,238 | ) |
| Net Cash Used for Financing Activities                                             |   |              | (8,316  | ) |   |   | (63,063 | ) |
|                                                                               |   |              |    |   |   |   |   |   |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents                       |   |              | (89     | ) |   |   | 1 |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                               |   |              | 15,668  |   |   |   | (15,347 | ) |
| Cash and Cash Equivalents at Beginning of Period                                   |   |              | 18,062  |   |   |   | 29,285 |   |
| Cash and Cash Equivalents at End of Period                                         |   | $                 | 33,730  |   |   | $ | 13,938 |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                 |   |              |    |   |   |   |   |   |
| Cash Paid (Received) During the Period for:                                        |   |              |    |   |   |   |   |   |
| Income Taxes                                                                       |   | $                 | 9,872   |   |   | $ | (5,355 | ) |
| Interest                                                                           |   | $                 | 1,143   |   |   | $ | 2,092 |   |
| Supplemental Non-cash Investing and Financing Activities:                          |   |              |    |   |   |   |   |   |
| Capital Expenditures Funded Through Capital Leases                                 |   | $                 | 2,599   |   |   | $ | 2,703 |   |
| Collateralized Borrowings Incurred for Operating Lease Equipment                   |   | $                 | 582     |   |   | $ | 1,564 |   |

----

| 1.      | Basis of Presentation |
|-----------------------------|-----------------------|

| 2.      | Newly Adopted Accounting Pronouncements |
|-----------------------------|-----------------------------------------|

| 3.      | Management Actions |
|-----------------------------|--------------------|

|                             |   | Severance, Early Retirement and Related Costs |    |
|----------------------------------|--------|-----------------------------------------------|---------|
| 2008 workforce reduction action  |   | $                                             | 14,261  |   |
| Cash payments                    |   |                                          | (355    | ) |
| Foreign currency adjustments     |   |                                          | 5       |   |
| Balance as of December 31, 2008  |   |                                          | 13,911  |   |
| Cash payments                    |   |                                          | (11,206 | ) |
| Foreign currency adjustments     |   |                                          | (56     | ) |
| Adjustment of accrual            |   |                                          | (2,003  | ) |
| Balance as of December 31, 2009  |   |                                          | 646     |   |
| Cash payments                    |   |                                          | (29     | ) |
| Foreign currency adjustments     |   |                                          | (45     | ) |
| Adjustment of accrual            |   |                                          | (73     | ) |
| Balance as of September 30, 2010 |   | $                                             | 499     |   |

----

| 4.      | Acquisitions |
|-----------------------------|--------------|

| Current Assets               |   | $      | 339 |   |
|------------------------------|--------|--------|-----|--------|
| Identified Intangible Assets |   |   | 203 |   |
| Total Assets Acquired        |   |   | 542 |   |
| Current Liabilities          |   |   | 158 |   |
| Total Liabilities Assumed    |   |   | 158 |   |
| Net Assets Acquired          |   | $      | 384 |   |

| 5.      | Inventories |
|-----------------------------|-------------|

|                                                |   | September 30, |    |   | December 31, |   |
|-----------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                |   | 2010          |    |   | 2009         |   |
| Inventories carried at LIFO:                        |   |          |    |   |         |   |
| Finished goods                                      |   | $             | 42,636  |   |         | $      | 36,528 |   |
| Raw materials, production parts and work-in-process |   |          | 17,433  |   |         |   | 16,210 |   |
| LIFO reserve                                        |   |          | (28,873 | )      |         |   | (28,873 | ) |
| Total LIFO inventories                              |   |          | 31,196  |   |         |   | 23,865 |   |
|                                                |   |          |    |   |         |   |   |   |
| Inventories carried at FIFO:                        |   |          |    |   |         |   |   |   |
| Finished goods                                      |   |          | 17,984  |   |         |   | 17,063 |   |
| Raw materials, production parts and work-in-process |   |          | 19,361  |   |         |   | 15,718 |   |
| Total FIFO inventories                              |   |          | 37,345  |   |         |   | 32,781 |   |
| Total inventories                                   |   | $             | 68,541  |   |         | $      | 56,646 |   |

| 6.      | Goodwill and Intangible Assets |
|-----------------------------|--------------------------------|

|                             |   |     |   |   | Accumulated |   |    |   |   |
|----------------------------------|--------|----------|--------|--------|-------------|--------|---------|--------|--------|
|                             |   |     |   |   | Impairment  |   |    |   |   |
|                             |   | Goodwill |   |   | Losses      |   |    | Total  |   |
| Balance as of December 31, 2009  |   | $        | 68,706 |   |        | $      | (48,525 | )      |   | $ | 20,181 |   |
| Adjustments                      |   |     | (177   | )      |        |   | -       |   |   |   | (177 | ) |
| Foreign currency fluctuations    |   |     | (1,297 | )      |        |   | 1,514   |   |   |   | 217 |   |
| Balance as of September 30, 2010 |   | $        | 67,232 |   |        | $      | (47,011 | )      |   | $ | 20,221 |   |

----

|                                      |   |  Customer Lists |   |   |   |   |   |       |   |   |   |
|-------------------------------------------|--------|----------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|
|                                      |   | and                  |   |   | Trade  |   |   |       |   |   |   |   |
|                                      |   | Service Contracts    |   |   | Name   |   |   | Technology |   |   | Total  |   |
| Balance as of September 30, 2010:         |   |                 |   |   |   |   |   |       |   |   |   |   |
| Original cost                             |   | $                    | 26,654 |   |   | $      | 4,790  |       |   | $      | 3,509  |   |   | $ | 34,953 |   |
| Accumulated amortization                  |   |                 | (6,725 | )      |   |   | (830   | )          |   |   | (1,167 | ) |   |   | (8,722 | ) |
| Carrying value                            |   | $                    | 19,929 |   |   | $      | 3,960  |       |   | $      | 2,342  |   |   | $ | 26,231 |   |
| Weighted-average original life (in years) |   |                 | 14     |   |   |   | 14     |       |   |   | 11     |   |   |   |   |   |
|                                      |   |                 |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Balance as of December 31, 2009:          |   |                 |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Original cost                             |   | $                    | 27,018 |   |   | $      | 4,999  |       |   | $      | 3,684  |   |   | $ | 35,701 |   |
| Accumulated amortization                  |   |                 | (4,911 | )      |   |   | (594   | )          |   |   | (953   | ) |   |   | (6,458 | ) |
| Carrying value                            |   | $                    | 22,107 |   |   | $      | 4,405  |       |   | $      | 2,731  |   |   | $ | 29,243 |   |
| Weighted-average original life (in years) |   |                 | 14     |   |   |   | 14     |       |   |   | 11     |   |   |   |   |   |

| Remaining 2010 |   | $      | 773    |   |
|----------------|--------|--------|--------|--------|
| 2011           |   |   | 3,090  |   |
| 2012           |   |   | 2,573  |   |
| 2013           |   |   | 2,452  |   |
| 2014           |   |   | 2,307  |   |
| Thereafter     |   |   | 15,036 |   |
| Total          |   | $      | 26,231 |   |

| 7.      | Debt |
|-----------------------------|------|

|                       |   | September 30, |   |   | December 31, |   |
|----------------------------|--------|---------------|--------|--------|--------------|--------|
|                       |   | 2010          |   |   | 2009         |   |
| Short-Term Borrowings:     |   |          |   |   |         |   |
| Bank borrowings            |   | $             | -      |   |         | $      | 7 |   |
| Long-Term Debt:            |   |          |   |   |         |   |   |   |
| Bank borrowings            |   | $             | 138    |   |         | $      | 174 |   |
| Credit facility borrowings |   |          | 25,000 |   |         |   | 25,000 |   |
| Collateralized borrowings  |   |          | 582    |   |         |   | 1,342 |   |
| Capital lease obligations  |   |          | 6,031  |   |         |   | 7,688 |   |
| Total Long-Term Debt       |   |          | 31,751 |   |         |   | 34,204 |   |
| Less: current portion      |   |          | 4,066  |   |         |   | 4,012 |   |
| Long-Term Portion          |   | $             | 27,685 |   |         | $      | 30,192 |   |

----

----

| 8.      | Warranty |
|-----------------------------|----------|

|                          |   | Nine Months Ended |   |
|-------------------------------|--------|-------------------|--------|
|                          |   | September 30      |   |
|                          |   | 2010              |   |   | 2009 |   |
| Beginning balance             |   | $                 | 5,985  |   |   | $ | 6,018 |   |
| Additions charged to expense  |   |              | 7,668  |   |   |   | 5,677 |   |
| Acquired liabilities          |   |              | -      |   |   |   | 17 |   |
| Foreign currency fluctuations |   |              | (162   | ) |   |   | 101 |   |
| Claims paid                   |   |              | (6,653 | ) |   |   | (6,055 | ) |
| Ending balance                |   | $                 | 6,838  |   |   | $ | 5,758 |   |

| 9.      | Fair Value Measurements |
|-----------------------------|-------------------------|

| §   | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| §   | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
|--------------------|-----------------------------------------------------------------------------------------|

|                                        |   | Fair   |   |   |         |   |   |    |   |   |         |   | Valuation |
|---------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|---------|--------|--------|--------------|--------|-----------|
|                                        |   | Value  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   | Technique |
| Assets:                                     |   |   |   |   |         |   |   |    |   |   |         |   |      |
| Applied Cleansing customer list             |   | $      | 203    |   |         | $      | -      |    |   | $      | -            |   |      | $ | 203 |   | (a) |
| Foreign currency forward exchange contracts |   |   | 33     |   |         |   | -      |    |   |   | 33           |   |      |   | - |   | (b) |
| Total Assets                                |   | $      | 236    |   |         | $      | -      |    |   | $      | 33           |   |      | $ | 203 |   |   |
| Liabilities:                                |   |   |   |   |         |   |   |    |   |   |         |   |      |   |   |   |   |
| Foreign currency forward exchange contracts |   | $      | 207    |   |         | $      | -      |    |   | $      | 207          |   |      | $ | - |   | (b) |
| Total Liabilities                           |   | $      | 207    |   |         | $      | -      |    |   | $      | 207          |   |      | $ | - |   |   |

| (a)   | We used an internally developed discounted cash flow valuation model to value the Applied Cleansing customer list due to the relatively small value of this acquired intangible asset. Inputs for this valuation model were based on internally developed forecasts and assumptions. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Our foreign currency forward exchange contracts are valued based on quoted forward foreign exchange prices at the reporting date. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Retirement Benefit Plans |
|-----------------|--------------------------|

|                                      |   | Three Months Ended |   |
|-------------------------------------------|--------|--------------------|--------|
|                                      |   | September 30       |   |
|                                      |   | Pension Benefits   |   |   | Postretirement |   |
|                                      |   | U.S. Plans         |   |   | Non-U.S. Plans |   |   | Medical Benefits |   |
|                                      |   | 2010               |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Service cost                              |   | $                  | 165    |   |   | $ | 162 |   |   | $ | 13 |   |   | $ | 10 |   |   | $ | 30 |   |   | $ | 35 |   |
| Interest cost                             |   |               | 508    |   |   |   | 529 |   |   |   | 52 |   |   |   | 45 |   |   |   | 171 |   |   |   | 214 |   |
| Expected return on plan assets            |   |               | (586   | ) |   |   | (692 | ) |   |   | (36 | ) |   |   | (26 | ) |   |   | - |   |   |   | - |   |
| Amortization of net actuarial loss (gain) |   |               | 5      |   |   |   | (38 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of transition asset          |   |               | -      |   |   |   | (5 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of prior service cost        |   |               | 138    |   |   |   | 139 |   |   |   | - |   |   |   | - |   |   |   | (145 | ) |   |   | (145 | ) |
| Foreign currency                          |   |               | -      |   |   |   | - |   |   |   | 95 |   |   |   | 23 |   |   |   | - |   |   |   | - |   |
| Net periodic cost                         |   | $                  | 230    |   |   | $ | 95 |   |   | $ | 124 |   |   | $ | 52 |   |   | $ | 56 |   |   | $ | 104 |   |

|                                      |   | Nine Months Ended |   |
|-------------------------------------------|--------|-------------------|--------|
|                                      |   | September 30      |   |
|                                      |   | Pension Benefits  |   |   | Postretirement |   |
|                                      |   | U.S. Plans        |   |   | Non-U.S. Plans |   |   | Medical Benefits |   |
|                                      |   | 2010              |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Service cost                              |   | $                 | 493    |   |   | $ | 486 |   |   | $ | 40 |   |   | $ | 30 |   |   | $ | 91 |   |   | $ | 106 |   |
| Interest cost                             |   |              | 1,524  |   |   |   | 1,587 |   |   |   | 157 |   |   |   | 140 |   |   |   | 511 |   |   |   | 640 |   |
| Expected return on plan assets            |   |              | (1,755 | ) |   |   | (2,074 | ) |   |   | (109 | ) |   |   | (81 | ) |   |   | - |   |   |   | - |   |
| Amortization of net actuarial loss (gain) |   |              | 16     |   |   |   | (114 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of transition asset          |   |              | -      |   |   |   | (15 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of prior service cost        |   |              | 415    |   |   |   | 416 |   |   |   | - |   |   |   | - |   |   |   | (435 | ) |   |   | (435 | ) |
| Foreign currency                          |   |              | -      |   |   |   | - |   |   |   | (42 | ) |   |   | 42 |   |   |   | - |   |   |   | - |   |
| Net periodic cost                         |   | $                 | 693    |   |   | $ | 286 |   |   | $ | 46 |   |   | $ | 131 |   |   | $ | 167 |   |   | $ | 311 |   |

----

| 11.   | Comprehensive Income (Loss) |
|-----------------|-----------------------------|

|                                     |   | Three Months Ended |   |   | Nine Months Ended |   |
|------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                     |   | September 30       |   |   | September 30      |   |
|                                     |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Net Earnings (Loss)                      |   | $                  | 7,526  |   |              | $      | 5,783 |   |   | $ | 17,791 |   |   | $ | (32,956 | ) |
| Foreign currency translation adjustments |   |               | 4,797  |   |              |   | 1,725 |   |   |   | (1,173 | ) |   |   | 5,324 |   |
| Pension adjustments                      |   |               | (1     | )      |              |   | (49 | ) |   |   | 2,141 |   |   |   | 168 |   |
| Comprehensive Income (Loss)              |   | $                  | 12,322 |   |              | $      | 7,459 |   |   | $ | 18,759 |   |   | $ | (27,464 | ) |

| 12.   | Commitments and Contingencies |
|-----------------|-------------------------------|

| 13.   | Income Taxes |
|-----------------|--------------|

----

| 14.   | Stock-Based Compensation |
|-----------------|--------------------------|

|                                        |   | Nine Months Ended |   |
|---------------------------------------------|--------|-------------------|--------|
|                                        |   | September 30      |   |
|                                        |   | 2010              |   |   | 2009 |   |
| Stock options and stock appreciation rights |   | $                 | 1,329  |   |   | $ | 643 |   |
| Restricted share awards                     |   |              | 634    |   |   |   | 629 |   |
| Share-based liabilities                     |   |              | 101    |   |   |   | 144 |   |
| Total Stock-Based Compensation Expense      |   | $                 | 2,064  |   |   | $ | 1,416 |   |

| 15.   | Earnings (Loss) Per Share |
|-----------------|---------------------------|

|                                          |   | Three Months Ended |       |   | Nine Months Ended |   |
|-----------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                          |   | September 30       |       |   | September 30      |   |
|                                          |   | 2010               |       |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Numerator:                                    |   |               |       |   |              |   |   |   |   |   |   |   |
| Net Earnings (Loss)                           |   | $                  | 7,526      |   |              | $      | 5,783 |   |   | $ | 17,791 |   |   | $ | (32,956 | ) |
| Denominator:                                  |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic - Weighted Average Shares Outstanding   |   |               | 18,873,249 |   |              |   | 18,591,713 |   |   |   | 18,782,404 |   |   |   | 18,466,989 |   |
| Effect of dilutive securities:                |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options                        |   |               | 529,653    |   |              |   | 362,295 |   |   |   | 517,379 |   |   |   | - |   |
| Diluted - Weighted Average Shares Outstanding |   |               | 19,402,902 |   |              |   | 18,954,008 |   |   |   | 19,299,783 |   |   |   | 18,466,989 |   |
| Basic Earnings (Loss) per Share               |   | $                  | 0.40       |   |              | $      | 0.31 |   |   | $ | 0.95 |   |   | $ | (1.78 | ) |
| Diluted Earnings (Loss) per Share             |   | $                  | 0.39       |   |              | $      | 0.31 |   |   | $ | 0.92 |   |   | $ | (1.78 | ) |

| 16.   | Segment Reporting |
|-----------------|-------------------|

----

|                        |   | Three Months Ended |    |   | Nine Months Ended |   |
|-----------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                        |   | September 30       |    |   | September 30      |   |
|                        |   | 2010               |    |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Americas                    |   | $                  | 111,756 |   |              | $      | 95,957 |   |   | $ | 312,023 |   |   | $ | 264,887 |   |
| Europe, Middle East, Africa |   |               | 38,746  |   |              |   | 45,192 |   |   |   | 123,330 |   |   |   | 131,823 |   |
| Asia Pacific                |   |               | 18,135  |   |              |   | 13,278 |   |   |   | 49,526 |   |   |   | 34,941 |   |
| Total                       |   | $                  | 168,637 |   |              | $      | 154,427 |   |   | $ | 484,879 |   |   | $ | 431,651 |   |

| 17.   | Related Party Transactions |
|-----------------|----------------------------|

| 18.   | Subsequent Event |
|-----------------|------------------|

----

|                                            |   | Three Months Ended |    |   | Nine Months Ended |   |
|-------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                            |   | September 30       |    |   | September 30      |   |
|                                            |   | 2010               |    |   | %                 |   |   | 2009 |   |   | % |   |   | 2010 |   |   | % |   |   | 2009 |   |   | % |   |
| Net Sales                                       |   | $                  | 168,637 |   |              |   | 100.0 |   |   | $ | 154,427 |   |   |   | 100.0 |   |   | $ | 484,879 |   |   |   | 100.0 |   |   | $ | 431,651 |   |   |   | 100.0 |   |
| Cost of Sales                                   |   |               | 96,775  |   |              |   | 57.4 |   |   |   | 89,539 |   |   |   | 58.0 |   |   |   | 277,715 |   |   |   | 57.3 |   |   |   | 253,939 |   |   |   | 58.8 |   |
| Gross Profit                                    |   |               | 71,862  |   |              |   | 42.6 |   |   |   | 64,888 |   |   |   | 42.0 |   |   |   | 207,164 |   |   |   | 42.7 |   |   |   | 177,712 |   |   |   | 41.2 |   |
| Operating Expense:                              |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and Development Expense                |   |               | 7,114   |   |              |   | 4.2 |   |   |   | 5,466 |   |   |   | 3.5 |   |   |   | 19,058 |   |   |   | 3.9 |   |   |   | 16,837 |   |   |   | 3.9 |   |
| Selling and Administrative Expense              |   |               | 54,227  |   |              |   | 32.2 |   |   |   | 51,800 |   |   |   | 33.5 |   |   |   | 160,463 |   |   |   | 33.1 |   |   |   | 146,271 |   |   |   | 33.9 |   |
| Goodwill Impairment Charge                      |   |               | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 43,363 |   |   |   | 10.0 |   |
| Total Operating Expense                         |   |               | 61,341  |   |              |   | 36.4 |   |   |   | 57,266 |   |   |   | 37.1 |   |   |   | 179,521 |   |   |   | 37.0 |   |   |   | 206,471 |   |   |   | 47.8 |   |
| Profit (Loss) from Operations                   |   |               | 10,521  |   |              |   | 6.2 |   |   |   | 7,622 |   |   |   | 4.9 |   |   |   | 27,643 |   |   |   | 5.7 |   |   |   | (28,759 | ) |   |   | (6.7 | ) |
| Other Income (Expense):                         |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                                 |   |               | 52      |   |              |   | - |   |   |   | 96 |   |   |   | 0.1 |   |   |   | 129 |   |   |   | - |   |   |   | 301 |   |   |   | 0.1 |   |
| Interest Expense                                |   |               | (390    | )      |              |   | (0.2 | ) |   |   | (726 | ) |   |   | (0.5 | ) |   |   | (1,219 | ) |   |   | (0.3 | ) |   |   | (2,290 | ) |   |   | (0.5 | ) |
| Net Foreign Currency Transaction Gains (Losses) |   |               | 130     |   |              |   | 0.1 |   |   |   | 353 |   |   |   | 0.2 |   |   |   | (432 | ) |   |   | (0.1 | ) |   |   | 145 |   |   |   | - |   |
| ESOP Income                                     |   |               | -       |   |              |   | - |   |   |   | 252 |   |   |   | 0.2 |   |   |   | - |   |   |   | - |   |   |   | 740 |   |   |   | 0.2 |   |
| Other Income (Expense), Net                     |   |               | 57      |   |              |   | - |   |   |   | 21 |   |   |   | - |   |   |   | 115 |   |   |   | - |   |   |   | (27 | ) |   |   | - |   |
| Total Other Expense, Net                        |   |               | (151    | )      |              |   | (0.1 | ) |   |   | (4 | ) |   |   | - |   |   |   | (1,407 | ) |   |   | (0.3 | ) |   |   | (1,131 | ) |   |   | (0.3 | ) |
|                                            |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit (Loss) Before Income Taxes               |   |               | 10,370  |   |              |   | 6.1 |   |   |   | 7,618 |   |   |   | 4.9 |   |   |   | 26,236 |   |   |   | 5.4 |   |   |   | (29,890 | ) |   |   | (6.9 | ) |
| Income Tax Expense                              |   |               | 2,844   |   |              |   | 1.7 |   |   |   | 1,835 |   |   |   | 1.2 |   |   |   | 8,445 |   |   |   | 1.7 |   |   |   | 3,066 |   |   |   | 0.7 |   |
| Net Earnings (Loss)                             |   | $                  | 7,526   |   |              |   | 4.5 |   |   | $ | 5,783 |   |   |   | 3.7 |   |   | $ | 17,791 |   |   |   | 3.7 |   |   | $ | (32,956 | ) |   |   | (7.6 | ) |
| Earnings (Loss) per Diluted Share               |   | $                  | 0.39    |   |              |   |   |   |   | $ | 0.31 |   |   |   |   |   |   | $ | 0.92 |   |   |   |   |   |   | $ | (1.78 | ) |   |   |   |   |

----

|             |               | % Change as Compared to 2009 |
|------------------|--------------------|------------------------------|
|             |               | Three Months Ended           |   | Nine Months Ended |
| Growth Elements  | September 30, 2010 |                         | September 30, 2010 |
| Organic Growth:  |               |                         |   |
|             | Volume             | 10.7%                        |   | 11.3% |
|             | Price              | -                            |   | - |
| Organic Growth   | 10.7%              |                         | 11.3% |
| Foreign Currency | (1.5%)             |                         | 1.0% |
|             | Total              | 9.2%                         |   | 12.3% |

|   | ·    an organic sales increase of approximately 10.7%, excluding the effects of acquisitions and foreign currency exchange, due to volume growth in equipment sales; partially offset |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·    an unfavorable direct foreign currency exchange impact of approximately 1.5%. |
|--------|--------------------------------------------------------------------------------------------------------|

|   | ·    an organic sales increase of approximately 11.3% due to an increase in equipment unit volume; and |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | ·    a favorable direct foreign currency exchange impact of approximately 1.0%. |
|--------|-----------------------------------------------------------------------------------------------------|

|                           |   | Three Months Ended |    |   | Nine Months Ended |   |
|--------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                           |   | September 30       |    |   | September 30      |   |
|                           |   | 2010               |    |   | 2009              |   |   | % |   |   | 2010 |   |   | 2009 |   |   | % |   |
| Americas                       |   | $                  | 111,756 |   |              | $      | 95,957 |   |   |   | 16.5 |   |   | $ | 312,023 |   |   | $ | 264,887 |   |   |   | 17.8 |   |
| Europe, Middle East and Africa |   |               | 38,746  |   |              |   | 45,192 |   |   |   | (14.3 | ) |   |   | 123,330 |   |   |   | 131,823 |   |   |   | (6.4 | ) |
| Asia Pacific                   |   |               | 18,135  |   |              |   | 13,278 |   |   |   | 36.6 |   |   |   | 49,526 |   |   |   | 34,941 |   |   |   | 41.7 |   |
| Total                          |   | $                  | 168,637 |   |              | $      | 154,427 |   |   |   | 9.2 |   |   | $ | 484,879 |   |   | $ | 431,651 |   |   |   | 12.3 |   |

----

----

----

|                                                         |   | Nine Months Ended |   |
|--------------------------------------------------------------|--------|-------------------|--------|
|                                                         |   | September 30      |   |
|                                                         |   | 2010              |   |   | 2009 |   |
| Operating Activities                                         |   | $                 | 30,184 |   |   | $ | 58,420 |   |
| Investing Activities:                                        |   |              |   |   |   |   |   |   |
| Purchases of Property, Plant and Equipment, Net of Disposals |   |              | (6,085 | ) |   |   | (8,543 | ) |
| Acquisitions of Businesses, Net of Cash Acquired             |   |              | (26    | ) |   |   | (2,162 | ) |
| Financing Activities                                         |   |              | (8,316 | ) |   |   | (63,063 | ) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents |   |              | (89    | ) |   |   | 1 |   |
| Net Increase (Decrease) in Cash and Cash Equivalents         |   | $                 | 15,668 |   |   | $ | (15,347 | ) |

|   |   | September 30, 2010 |   | December 31, 2009 |   | September 30, 2009 |
|--------|--------|--------------------|--------|-------------------|--------|--------------------|
| DSO    |   | 62                 |   | 67                |   | 66                 |
| DIOH   |   | 91                 |   | 87                |   | 94                 |

----

----

----

----

|                   |   |                                                                                                    |   |           |                                                                                                                    |            | Total Number of                                                                                                                 |                |   |
|------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|----------------|-------------------------------------------------------------------------------------------------------------------------|-----------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|
|                   |   |                                                                                                    |   |           |                                                                                                                    |            |  Shares Purchased                                                                                                          |                |
|                   |   |  Total Number                                                                                      |   |           |  as Part of Publicly                                                                                               |            | Maximum Number of                                                                                                               |
| For the Quarter Ended  |   | of Shares                                                                                               |   | Average Price  |                                                                                                                    | Announced Plans |                                                                                                                            | Shares that May Yet |
| September 30, 2010     |   | Purchased (1)                                                                                           |   | Paid Per Share |                                                                                                                    | or Programs     |                                                                                                                            | Be Purchased        |
| July 1 - 31, 2010      |   |                  9 |   |           |  $                33.82            |            |                      - |                |   |                       288,874 |
| August 1 - 31, 2010    |   |        30,644                                                        |   |           |                    32.38 |            |             30,005                                                  |                |   |                       258,869 |
| September 1 - 30, 2010 |   |        70,061                                                        |   |           |                    31.19 |            |             69,995                                                  |                |   |                       188,874 |
| Total                  |   |      100,714                                                                   |   |           |  $                31.55            |            |           100,000                                                             |                |   |                       188,874 |

----

| Item # |   | Description                                   |   | Method of Filing                                                                                                                                         |
|--------|--------|-----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3i     |   | Restated Articles of Incorporation            |   | Incorporated by reference to Exhibit 3i to the Company’s report on Form 10-Q for the quarterly period ended September 30, 2006.                    |
| 3ii    |   | Certificate of Designation                    |   | Incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.                         |
| 3iii   |   | Amended and Restated By-Laws                  |   | Incorporated by reference to Exhibit 4(c) to the Company’s Registration Statement on Form S-3, Registration No. 333-160887 filed on July 30, 2009. |
| 31.1   |   | Rule 13a-14(a)/15d-14(a) Certification of CEO |   | Filed herewith electronically.                                                                                                                           |
| 31.2   |   | Rule 13a-14(a)/15d-14(a) Certification of CFO |   | Filed herewith electronically.                                                                                                                           |
| 32.1   |   | Section 1350 Certification of CEO             |   | Filed herewith electronically.                                                                                                                           |
| 32.2   |   | Section 1350 Certification of CFO             |   | Filed herewith electronically.                                                                                                                           |

----

|   |   |              |   | TENNANT COMPANY                                                                                      |
|--------|--------|-------------------|--------|------------------------------------------------------------------------------------------------------|
|   |   |              |   |                                                                                                 |
| Date:  |   | November 2 , 2010 |   | /s/   H. Chris Killingstad                                                            |
|   |   |              |   | H. Chris KillingstadPresident and Chief Executive Officer                                            |
|   |   |              |   |                                                                                                 |
| Date:  |   | November 2, 2010  |   | /s/   Thomas Paulson                                                                  |
|   |   |              |   | Thomas PaulsonVice President and Chief Financial Officer(Principal Financial and Accounting Officer) |